ICSI experts unhappy with short-term focus

Some of the provisions of the Union Budget 2008-09 are unrealistic, but it will not affect the economy at large as the central budget has lost importance over the years, experts said at an interactive session organised by Institute of Company Secretaries of India, eastern India regional council.

Dipankar Chatterjee, senior partner, L B Jha & Co, said "The budget is only for short term, with no long term views."

No major policy decisions were announced in the budget, while many policies were earlier announced by the government. He said the Rs 60,000 crore debt waiver crore for farmers would not stop farmer's suicides in troubled areas, as most marginal farmers depended on monelenders.

Instead, the government could have frozen the debt for five years, and used the money for productive purposes, he suggested.

Terming the budget as an "unfriendly one", he said, while industry would be largely unaffected, the government should have considered some demands like a legal framework for the public-private partnership (PPP) model.

S S Gupta, senior tax consultant, said while some of the provisions in the area of direct taxes had been clarified, more clarity was needed.

Increase of short term capital gains tax from 10 per cent to 15 per cent was an important amendment in this year's budget.

Kishor Shah, whole-time director, SMIFS Capital Markets, said increase in short term capital gains' tax would cause market volatility in the coming months.